An Incredible day for traders day trading futures, specifically Euro Currency Futures. This market rallied over 150 ticks in less then 1 hour and in one five minute bar had a range of 55 ticks. This is a great example of why short-term traders should utilize stops when day trading futures.. This is one of those days where a day trader gets into a position, forgets to utilize a stop, or just isn't trading with a stop and get's caught. The question now is what to do? How many traders (inclucing myself) have tried to fight back by scaling in looking for a retracement? Well, even if that works it's never the right decision. Or how many traders have gotten caught and then turn a short-term trade into a position trade? Learning to step out of the market on a day like today (see chart below) in my opinion is a good habit for day traders to practice, particularly those traders with smaller accounts or not alot of experience day trading futures. Remember, trading is like war, therefore it's not going to be won in one battle. So, pick your spots and if the battle gets to heavy you can always retreat to fight another day. There is significant risk in trading futures, therefore you should carefully consider whether such an investment is right for you in light of your financial position.